Dry bulk iron ore freights drop amid lack of inquiries

• Demand from Indian Ocean region falls amid festive season
  
  
• Weak sentiments pull down China's iron ore fines prices d-o-d
  
  

Dry bulk iron ore freights exhibited downward trends this week. The lack of tonnage demand from the Indian Ocean region due to the ongoing festive period limited the movement of ships, keeping freights at lower levels. However, a major Australian miner was seen fixing large vessels for mid-November shipment at levels similar to last week.

According to BigMint's assessment, Asia-Pacific Supramax dry bulk freights (50,000-55,000 tonnes) for iron ore shipments from the east coast of India to China declined by $0.6/tonne (t) w-o-w to $12.3/t on 30 October.

China's spot prices of iron ore fines (Fe 62%) were assessed at $103.3/t CFR on 29 October, down by $1/t d-o-d amid dampened market sentiments following limited signals on policy changes from China's recent Politburo meeting. Participants are now eyeing the upcoming National People's Congress for clearer economic direction.

Notably, iron ore fines prices rose from $98/t CFR China last week to $104/t early this week before declining to $103/t CFR China yesterday.

Route-wise freight market updates

• India-China: Freights from the Indian Ocean to China were recorded at $12.3/t, a drop of $0.6/t w-o-w. According to shipowners, demand from western India was sluggish for the past two weeks owing to better domestic realisations and Diwali festival celebrations, which kept trading activities low.
  
  
• Australia-China: Freights for Capesize vessels carrying iron ore from Western Australia to China were assessed at $8.6/t on 30 October, stable w-o-w. According to sources, major Australian miner Rio Tinto booked two Capesize vessels from Dampier Port to Qingdao Port at around $8.65-8.75/t for mid-November shipment.
  
  
• Brazil-China: Freights for Capesize vessels carrying iron ore from Brazil to China dropped this week. Rates for shipments from Tubarao Port to Qingdao Port were assessed at $20.8/t on 30 October, a decrease of $0.3/t w-o-w. As per sources, the absence of inquiries for the route brought down freights.
  
  
• South Africa-China: Capesize freights from the Saldanha Bay Port to Qingdao Port declined by $0.27/t w-o-w to $16.03/t. The lack of inquiries for the route weighed on shipping rates, sources informed.